Laboratory Corp. of America (LabCorp.) has settled a lawsuit brought by its subsidiary Dianon Systems Inc. against five former employees and Diapath LLC.

The case, filed last June in Federal Court in New York, contended that the former employees had, among other things, engaged in unfair trade practices in attempt to get Dianon customers to send their samples to their new lab venture, Diapath.

Without admitting wrongdoing, the defendants agreed to certain conditions that would prevent unfair competition including the agreement not to solicit the business of certain Dianon customers for a set period of time.

The defendants also agreed to dismiss their counterclaims, pay what LabCorp described in a press release a “significant monetary sum,” and to discontinue the use of the name Diapath.

The settlement is subject to the approval of the court.

As a national laboratory with annual revenues of $2.5 billion in 2002 and over 24,000 employees, LabCorp offers more than 4,000 clinical tests ranging from routine blood analyses to sophisticated molecular diagnostics.

Serving over 200,000 clients nationwide, LabCorp has its corporate headquarters in Burlington and its Center for Molecular Biology and Pathology in nearby Research Triangle Park.